Eastside Real Estate Working-for-you!

Uncle Sam Wants You! (To buy a home -- and he'll give you $$)

 

I WANT YOU!

 

Uncle Sam wants to give you money! Up to $8,000 in a tax credit if you are a first time Buyer making a home purchase.  (You are a first time Buyer if you are buying your first home OR have not owned a home for 3 years or more.)

The tax credit is for owner occupied homes purchased between January 1, 2009, and December 1, 2009.  You will NOT have to pay this credit back as long as you live in the home without selling it for at least 3 years.

The income limitation is $75,000 for single tax payers claiming the full credit and $150,000 for married tax payers.  The credit remains refundable, which means that first-time home buyers who owes less than $8,000 in taxes for the year are still eligible for the full $8,000 credit when they file their tax returns.  In that case, the IRS will write you a check for the difference between $8,000 and your actual tax bill.  In fact, the credit can be claimed on your 2008 tax returns that you file by April 15, 2009, even if you buy the home in 2009.

If you a ready to make your home purchase, or you know someone who qualifies as a first time home buyer ready to make a home purchase, call or email Greg or Brian Today!  gregperry@working-for-you.com  brianperry@working-for-you.com.

 
By Greg Perry
Kirkland Realtor, www.425Realty.com
I you have further questions, please consult your tax advisor.

Monday's Inspiration -- The boys have returned to Spring Training

 Major league baseball and spring training.  The time of year that everyone, team executives, coaches, players and fans alike have high hopes for winning the pennant -- or at least vastly improving on last years standings.

I had a chance once again to see the game through the eyes of a 10 year old.  My grandson, Kai has just been picked for his team.  We went out a couple times over the weekend to toss the ball and work on his skills.  Getting good at picking up ground balls, catching pop flies and getting a turn to practice hitting is all he can think about.  We spent our time working on the fundamentals:  how to grip the ball; the motion of the arm and wrist; fielding body and glove positions; and the hand / eye coordination of soft tossed balls being hit into the backstop.  My grandson is starting to learn to focus on fundamentals and to achieve the extraordinary, he must consistently do the ordinary.

On the professional front, Seattle is all a twitter with the signing of our player.  Ken Griffey Jr.  Griffey is home.  This is the first year in a long time that I can't wait to go see a game at Safeco.

Great quotes have come out of baseball.  Here are a few:

That's the true harbinger of spring, not crocuses or swallows returning to Capistrano, but the sound of a bat on a ball.            Bill Veek

"It's the fans that need spring training.  You gotta get 'em interested.  Wake 'em up and let 'em know that their season is coming, the good times are gonna roll"              Harry Carey

"People ask me what I do in winter when there's no baseball.  I'll tell you what I do.  I stare out the window and wait for spring.                  Rogers Hornsby

No matter how good you are, you're going to lose one-third of your games.  No matter how bad you are, you're going to win one-third of your games.  It's the other third that makes the difference.  Tommy Lasorda

During my 18 years I came to bat almost 10,000 times.  I struck out about 1,700 times and walked maybe 1,800 times.  You figure a ballplayer will average about 500 at bats a season.  That means I played seven years without ever hitting the ball.    Mickey Mantle 1970

I don't know why people like the home run so much.  A home run is over as soon as it starts.... The triple is the most exciting play of the game.  A triple is like meeting a woman who excites you, spending the evening talking and getting more excited, then taking her home.  It drags on and on.  You're never sure how it's going to turn out.       George Foster 1978

Well, boys, it's a round ball and a round bat and you got to hit the ball square.   Joe Schultz 1969

There are two theories about hitting a knuckle ball.  Unfortunately, neither of them work. 
Charlie Lau (hitting coach)  

Hating the New York Yankees is as American as apple pie, unwed mothers and cheating on your income tax.       Mike Royko

What are we at the park for except to win?  I'd trip my mother.  I'd help her up, brusher her off, tell her I'm sorry.  but mother don't make it to third.      Leo Durocher

Progress always involves risks.  You can't steal second base and keep your foot on first.
Frederick B. Wilcox

And finally, Yogi Berra once instructed his players to "Pair up in threes".

Play Ball!

 

Buying Power

Real Estate Stimulus Package Becoming Clearer

While it looked for awhile that we may be getting a $15,000 tax credit for home buyers, Congress has  settled upon an $8,000 tax credit.

This just in from the National Association of Realtors:

1) the loan limits will be raised to $727,000 in high cost areas, 2) the tax credit will be raised to $8,000 with NO payback [a true credit], 3) interest rates have come down 125-150 basis points, and 4) the bill has over $50 billion in it for foreclosure mitigation, with Geitners Treasury plan signaling that the second half of TARP and TALF will be used to mitigate foreclosures through a government guarantee, drive down interest rates by buying another $200-300 billion of mortgage paper from the GSES's thereby freeing them up to do the same with new mortgages, and Fannie has just agreed to lift the cap of 4 investment properties eligible for loans and raise it to 10.

So for now, higher conforming loan limits, an $8,000 tax credit, lower interest rates and an increase in eligible loans for investors.  The bill passed the House today.  Vote in the Senate is pending.  More will come.........

Housing Stimulus Changes?

Developing........

The AP is reporting that the House looks to cut the housing tax credit back to $7500.

Working to accommodate the new, lower overall limit of the bill, negotiators effectively wiped out a Senate-passed provision for a new $15,000 tax credit to defray the cost of buying a home, these officials said. The agreement would allow taxpayers to deduct the sales tax paid on new car purchases, but not the interest on loans for the same vehicle 

More On Real Estate Stimulus......

Today, the Senate approved an $838 billion economic stimulus bill that includes a $15,000 home buyer tax credit.  Also, Treasury Secretary Geithner unveiled a multi trillion dollar financial stability plan that includes $50 billion for foreclosure prevention programs.

In play in the Senate package are higher loan limits for Fannie Mae, Freddie Mac and FHA.  The government is also looking to drive mortgage interest rates lower.

The House version already restores the upper limits for Fannie, Freddie and FHA loans programs to $729,750 in the higher cost housing areas, where they stood for much of 2008.  The House version also eliminates the repayment requirement on an existing $7500.00 tax credit that is scheduled to expire on July 1.  The Senate version would go farther, increasing the tax credit to $15,000 allowing all home buyers purchasing a principal residence within a year of the bill's enactment to claim it on their 2008 or 2009 returns.

The House and the Senate now must negotiate the two versions for a final bill.  It looks clear that both bodies of Congress are intent on passing a home buyer tax credit.  We'll be watching to see what the finished bill looks like.

Monday's Inspiration -- Some Of My Favorite Affirmations

• Today, I affirm what is true.
• I am having my BEST year ever!
• I can, I will, I believe.
• I take responsibility for everything in my life.
• My best is yet to come.
• I expect good results.
• I value the success I create.
• My focus for all people is contribution.
• I relax and do my best and trust God for the rest.
• I love and approve of myself.
• My mind is free of worries.
• I look forward to the energy that regular exercise gives me.
• By taking responsibility for what I put in my mouth, I am accomplishing my weight and health goals.
• I ask for what I want.
• I easily meet and exceed my goals.
• I control money, money does not control me.
• Money comes naturally to me.
• When I move forward on what I know, then everything becomes clearer.
• I focus on the fundamentals.  I know that to achieve the extraordinary, I must consistently do the ordinary.
• I know that FEAR means "false evidence appearing real", and when this happens, I creatively look for ways to move forward.
• I am intentional about my success.

Greg Perry, Kirkland Realtor
www.425Realty.com

More Real Estate Stimulus News.........

Some clarification on real estate stimulus issues from Washington Realtors:

Last week, the US House of Representatives passed the American Recovery and Reinvestment Act (H.R.1). This bill has some key provisions that will stimulate the housing market:

• It will restore FHA, Fannie Mae and Freddie Mac to 125 percent of median home prices - up to $729,750
• It would eliminate the repayment provision for the $7,500 first time home buyer tax credit
• It expands tax-exempt housing bonds

Two days ago, the Senate approved an amendment to their bill that offers up to a $15,000 tax credit to people that purchase a home in the next year.  The credit would apply to anyone, not just first time homebuyers and you would not need to repay the credit.  The credit is based on 10% of the purchase price of the home and the credit is spread over two years.  So for example, if you buy a house with a purchase price of $300,000, you would qualify for the maximum credit of $15,000.  The first year you claim the credit, you receive $7,500, and you would receive the remaining $7,500 the next year.

Senator Patty Murray Introduces Housing Amendment

In addition to supporting the $15,000 credit, Senator Patty Murray (D) Washington, has introduced her own amendment to the Senate Stimulus Bill relating to the FHA and conforming loan limits. Specifically, Murray's amendment:  

• Ensures that the 2008 FHA mortgage limits and conforming loan limits do not decline during calendar year 2009.
• Provides discretion to the Secretary of HUD and the Director of the Federal Housing Finance Agency (FHFA) to raise loan limits in sub-areas, up to the conforming ceiling for high cost areas.  
• Temporarily increases FHA's Home Equity Conversion Mortgage (HECM) limit to $625,500 for 2009.  

Free Government Money For Buyers?

Developing........

Last night the Senate voted to include a $15,000 tax credit in the new stimulus plan, up from the previous figure of $7,500, in hopes of revitalizing the slumping housing market. The proposal would allow a tax credit of 10% of the value of new or existing residences, up to a $15,000 limit. It appears this tax credit is extended to anyone buying a principal residence. The tax credit will apply to all purchases occurring within a year after the bill is signed into law. This would be a true tax credit; it does not have to be repaid. All the exact details are not yet known.

There are also rumors that the existing $7,500 tax credit provided with HR 3221 may be changed so that it does not need to be paid back as well. In addition, I also heard that if you purchase a home in 2009, you may amend your 2008 tax return to receive the $7,500 tax refund more quickly.

To see a discussion on this go to this post over on the SREP Blog:

http://blog.seattlepi.nwsource.com/realestate/archives/161339.asp

Buying UP in a DOWN Market

By Greg Perry
www.425Realty.com

If you're a homeowner who needs a bigger house, or just want to move up a rung in the home ownership ladder, a down market may be a good thing.

Here is a very simple example of what I mean:

Last year your favorite real estate agent told you your house would sell for $300,000. You weren't quite ready to sell....this year was better for you. Now he/she comes by and gives you startling news. Your lovely abode is now valued at $270,000! YIKES! You're looking a $30,000 shortfall in equity dead in the eye.

But wait! The new house you like was also valued for more last year, let's say $500,000. It's very likely it's price may be off by the same percentage (10%), which means this year it's worth $450,000. Here's what this may mean:

Buying UP in a down market

At the height of a hotter market, the gap between the two houses was $200,000. Now the gap between the same houses is $180,000. Yes, your home may be worth $30,000 less, but you save $20,000 between the two transactions! Keep in mind that the markets aren't as tidy as the simple graph, however the principle is powerful.

While you're pondering this one, remember that every 1 percent rise in interest rates means a 10% decline in affordability.

Don't wait too long before you get off the fence!